I.

Introduction

History

Chowking is a Philippine-based chain. The concept combines a Western fast

food service style with Chinese food. Chowking predominantly sells noodle soups, dim

sum, and rice toppings. The company was founded in 1985, at a time when Western-style

burger joints were dominating the Philippine fast food scene.

1985 – Founded by Robert F. Kuan, the first Chowking store opened in Rotary Arcade,

Makati

1989 – Opened first franchise and provincial store in Meycauayan, Bulacan

1991 – Began delivery operations; annual sales hit P1M

1992 – Opened stores in Visayas and Mindanao

1996 – Opened 100th store in San Joaquin, Pasig; annual sales hit P1B 1997 – Opened

first store in California, USA

1998 – Opened first store in Dubai

2000 – Became wholly-owned subsidiary of Jollibee Foods Corporation

2002 – Opened 200th store in Lingayen, Pangasinan

2004 – Opened 300th store in Taytay, Rizal

2005 – Opened first store in Indonesia; won Agora Marketing Awards, Araw Awards, and

Best Meat Processing Plant

2009 – Opened first store in Qatar; won Best Meat Processing Plant in AA Category

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2013 – Launched first Drive-Thru store in Urdaneta, McArthur Highway

Ownership and Management

Nature of Business

The Chowking Philippines business came out rising with profitable growth in 2017.

It was a year for the books as Chowking reached its 500th store mark, while garnering

growth and profit across its business units in Luzon, Visayas, and Mindanao. These

achievements have helped the brand become the fastest-growing QSR brand in the

young market segment. With all these, the business stays true to its priorities to: elevate

the brand experience, grow its flagship products, and achieve excellence in the

restaurant.

Chowking continued to maintain a strategic mix of TV, digital, out-of-home, radio

retail trade area and in-store marketing efforts. These platforms have helped the brand

communicate the unique, delicious, and good value of Chowking’s products. Chowking is

committed to attract the millennial market segment, as it pushes to win them over with

creative executions and engaging media placements. With growing its flagship products,

Chowking stays true to its unique Chinese positioning. Sales growth in 2017 was

delivered by Pork Chao Fan, Lauriat, Sweet and Sour Pork, and Wonton Mami—dishes

that Filipinos have come to love through Chowking. The company is committed to

ensuring that all Chowking dishes are served hot, fresh and delicious. Quality standards

are implemented from the commissary, down to how the dishes are served instore.

Chowking elevates excellence in restaurants through its growing presence and

strategic locations. It opened 59 new stores in 2017. Renovations were also made to

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improve existing stores. All these new and renovated stores have the modern Chinatown

food street theme which customers enjoy capturing on social media. Business channels,

specifically delivery and drive-thru have also elevated customer experience, so that

guests can enjoy Chowking at their convenience.

As the company RISES in 2018, Chowking will continue to power up to bring

guests hot, delicious, fresh well-loved Chinese food every day and everywhere! Chowking

is committed to attract the millennial market segment, as it pushes to win them over with

creative executions and engaging media placements.

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II. Research and Methodology

This study will adopt the descriptive type of research. A descriptive type of

research includes studies that purports to present facts concerning the nature and status

of anything. This means that it gives meaning to the quality and standing facts that are

going on.

III. Comparing Mission and Vision

Mission

To bring the joy of eating to everyone by serving great tasting food!

Vision

To be the go-to Quick Service Restaurant for Chinese food that inspires

success as we deliver superior value through our great-tasting and affordable

meals.

The mission statement delivers what the company would like to do in accordance

with their vision statement. Chowking envisions itself to be the “go-to quick service

restaurant for Chinese food” this implies their positioning strategy, offering great tasting

food with fast delivery. “To bring the joy of eating” implies that Chowking is not just about

great tasting food, affordable price, and fast delivery. They would also like the customers

to experience great and quality service.

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IV. External Analysis

A. General Statement

Politico-Legal

Every food businesses are obliged to follow certain rules and standard

procedure in order to operate. These are the examples of laws in a Philippine

setting that Chowking Intramuros practices are as follows:

Economic

NEDA (National Economic and Development Authority) report a modest growth of

Food industry by 3.2% in the year 2011 and 3.8% in the year 2012 which is back

by Government spending on drugs and medicine for public hospitals and also

spending on research for new vaccines and medicines for the community. Also,

the continued rise of consumer spending for food and personal care needs helps

the industry to grow faster and recover from its negative growth in the year 2010,

which is at -0.98%. With the industry growing at a much faster pace and consumer

spending is rising, Chowking will benefit to these trends and potentially increase

their sales/profit and even their market share.

Socio-cultural

The Filipinos are known to be a market that tends to be so reactive from price

adjustments and prices of products and services. One of those important products

that Filipinos spends a lot is the food that they eat everyday. Chowking offers

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 Chinese food products at a very affordable price; it sells its reputation of having a

trustworthy product and assures its consumers to its commitment in delivering a

high quality and tasty product.

Technological

With continued innovations of food products in the market industry developing all

around the world, fast food companies should benefit from this, especially here in

the Philippines. Philippines is considered “baby” or under-developed compare to

other countries with technological innovations. With the industry continually

evolves and innovate, Chowking should be one of the first companies to release

such products and with continued spending on the needs of their customers,

innovations and continued research will progress and help companies in the

industry in many ways.

Chowking Intramuros has direct and indirect competitors within the (2km) two-kilometer

radius area. The competition within the area is a serious thing to focus on due to the fact

that direct and indirect competitors are scattered in the same area which has the same

business goals to generate profit and increase its market share and shares same target

market.

Chowking’s direct competitors are Greenwhich, KFC, Chic-Boy, and Jollibee. These

companies are the major players in the fast-food industry which offers the similar product

line of Chowking. Indirect competitors are business establishments that offers

products/services that could be the substitute way to choose from aside from yours.

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Indirect competitors of Chowkings are Mini Stop, Carinderias near the area, 7eleven,

Alyssa’s and J’s.

Direct Competitors

The direct competitors chosen for this study are the food establishments that are inclined

with the same product and or/services that Chowking offers. These fast-food chains are

located beside Chowking Intramuros. The direct competitors of Chowking Intramuros are:

Business Location Description Price Range

Name

KFC Intramuros near A food establishment that PHP 50 - PHP

Manila Cathedral is known for its delicious 150
Church. chicken.

Greenwich A food establishment that PHP 80 - PHP

is known for its tasty pizza 399
and pasta.

Jollibee A food establishment that PHP 50 - PHP

is known for its juicy 150
Chicken Joy.

Chic-Boy A food establishment that PHP 99 - PHP

is known for its roasted 150
chicken.

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Indirect Competitors

The indirect competitors chosen for this study are the food establishments that offers

some of the product and or/services that Chowking offers. These are the substitute food

concessionaires/stalls that are located near the 2km radius area from Chowking

Intramuros. The indirect competitors are as follows:

Business Location Description Price Range

Name

7 Eleven Across Colegio de A convenient store that PHP 35 - PHP 150

San Juan de Letran offers some of their
product line that are
similar with Chowking.

Carinderias Around the walls of Food Stalls around the PHP 35 - PHP 150
Intramuros near walls of Intramuros that
Colegio de San offers affordable priced
Juan de Letran meals

Ministop Aduana St. near A convenient store that PHP 35 - PHP 150
Colegio de San offers some of their
Juan de Letran product line that are
similar with Chowking.

Jollibee Aduana St. near An establishment that PHP 40 - PHP 300

Colegio de San already has their market
Juan de Letran share usually to kids and
teenagers

Greenwich Aduana St. near An establishment that PHP 40 - PHP 320

Colegio de San already has their market
Juan de Letran share usually to

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 teenagers that loves
chicken and pizza

J's near Colegio de San A food establishment PHP 50 - PHP 80

Juan de Letran that offers different types
of lutong bahay

KFC Aduana St. near An establishment that PHP 50 - PHP 100

Colegio de San already has their market
Juan de Letran share usually to
teenagers that loves
chicken and unlimited
gravy

Alyssa's near Colegio de San A food establishment PHP 50 - PHP 80

Juan de Letran that offers different types
of lutong bahay

Product Offerings

RICE MEALS

Product Product Name Product Description Price

Category
Chao Fan Pork Chao Fan Ala Carte PHP. 54.00
w/ drink 65.00
w/ 4pcs. Siomai 88.00
w/ 4pcs. Siomai and drink 101.00

Yang Chow Ala Carte PHP. 74.00

w/ drink 85.00
Beef Chow Fan w/ drink 63.00

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Lauriat Chinese Style Comes with Chinese chicken, PHP. 175.00
Fried Chicken Fired rice, Chicharap, Siomai,
Lauriat Pancit canton and drink

Comes with 1 plate of Sour PHP. 750.00

Sweet & Sour Pork and Cream pork, 1 plate of
Lauriat Value Pancit Canton, 1 plate of
Feast (Good for 5) Chapsuey, and 5 glasses of
regular coke.

PHP. 693.00
Chinese-Style Comes with 8pc. Chinese-
Fried Chicken Style Fried Chicken,
Lauriat Value 1 Chopsuey ala carte,
Feast set (Good 2 Pancit Canton ala carte,
for 4) 4 Regular Drinks, and 4 Plain
Rice
PHP. 490.00

Chinese-Style Comes with 6pc. Chinese-

Fried Chicken Style Fried Chicken,
Lauriat Value 1 Chopsuey ala carte,
Feast (Good for 3) 1 Pancit Canton ala carte,
3 Regular Drinks,
3 Plain Rice,
PHP. 183.00

Chinese Style Fried chicken, pancit canton,

Fried Chicken pork siomai, chicharap and
Lauriat with Drink buchi -- all in one plate!

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 PHP. 175.00
183.00
Chinese Style Pork Golden Chinese Pork Rice
Chop Lauriat Lauriat
w/ drink PHP. 163.00
171.00
Sweet and Sour
Pork Lauriat Sweet and Sour Pork Lauriat
w. drink PHP. 163.00

Lumpiang
Shanghai Lauriat Lumpiang shanghai, pancit 171.00
canton, pork siomai, chicharap
and buchi -- all in one plate.
w/drink

Noodles & Meaty Wonton A bowl of steaming hot egg PHP. 55.00
Dimsum Mami noodles with real pork broth,
topped with tender and juicy
wonton, crisp baguio pechay
leaves, and garnished with
spring onion and fried onion

A sumptuous beef noodle 92.00

Beef Wonton Mami soup, served with flavorful
premium cut beef cubes with a
generous amount of mildly
flavored, right to the bite
noodles, immersed in a rich
creamy beef soup, served
withtender and juicy wonton,

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 freshly cut taiwan pechay,
garnished with leeks
102.00
Beef Mami A sumptuous beef noodle
soup, served with flavorful
premium cut beef cubes with a
generous amount of mildly
flavored, right to the bite
noodles, immersed in a rich
creamy beef soup, served with
freshly cut taiwan pechay,
garnished with leeks; availabe
in regular and large sizes. 85.00
Lomi
A thick hearty, egg-laden
noodle soup richly flavored
with succulent chicken balls,
sauteed pork, pork liver 57.00
Pancit Canton pieces, crisp vegetables,
served with calamansi.
Stir-fried canton noodles with
sauteed chicken strips, sliced
chicken balls, shrimps,
cabbage, carrots and spring 47.00
Pork Siomai onion, blended in slightly dark 37.00
Chunky Asado brown canton sauce
Siopao 42.00
Bola-bola Siopao 30.00
Choco Pao 47.00
Lumpiang 47.00
Shanghai

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 Fried Dumplings
Side Dishes Kangkong with 40.00
Bagoong
Pork Tofu 49.00
Buchi 35.00
Chicharap 40.00
Beverages Brewed Coffee 30.00
Pineapple Juice 40.00
Iced Tea 39.00
Naicha 59.00

B. Industry and Competitor Analysis

B.1 Industry Analysis

In 1989, Chowking started expanding its market share amid the volatility in the

domestic market. It started its franchising operations and made its entry into the provincial

markets the same year. On January 1, 2000, Chowking became a wholly owned

subsidiary of Jollibee Foods Corporation, the Philippines' biggest fast-food chain. The

change in ownership gave rise to store renovations and a new corporate look and mindset

that is visible from front-end to back-end.

To ensure its continued growth, Chowking explored markets outside the

Philippines. As of 2008, Chowking has over 400 stores within the Philippines and in

markets such as the United States, Middle East, and Indonesia. Chowking has steadily

been expanding its network in the Philippines. It is able to ensure the freshness of its food

and the reliability of its supply through its main commissaries in Highland, Muntinlupa City

and Sucat, Paranaque as well as satellite commissaries in Iloilo, Cebu, Cagayan de Oro,

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Davao, and Pangasinan. In Dubai in the United Arab Emirates, Chowking's commissary

serves ten stores and is expanding to other areas.

In 2008, Chowking announced the completion of a Php270-million (USD 5.65-

million) modernization program, which will help set the stage for the company’s future

growth. Called “Project DMSSM”(pronounced “dimsum”) for “Designed, Modernized and

Streamlined Supply Chain and Manufacturing,” the two-year modernization program that

started in 2006 involves the expansion and renovation of Chowking’s Noodle Building,

increased automation, and the improved integration of food manufacturing processes in

its two commissaries in Muntinlupa City.

Price

Chowking’s pricing strategy is very affordable and competitive enough among to its

competitors knowing that they offers Chinese cuisine they still managed and consider the

buying capacity of their target market here in the Philippines.

Place

Chowking is located at FEMII Bldg, A. Soriano Bldg Intramuros, 656 Zone 69, Manila,

1002 Metro Manila and it’s a perfect spot due to its demand generators such as the Manila

Cathedral church, Schools, San Agustin Church and Intramuros is one of the most visited

place by tourists.

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Promotion

Chowking is a commercialized fast-food chain here in the Philippines. It’s known for

providing tasty Chinese cuisines/delicacies and in order to capture more customers the

food establishments are involved into different promotional activities and strategies to

create brand awareness. Chowking advertise its products through TV Ads, Print Ads

(newspaper, posters, and flyers), Radio Ads, Transit Ads, Outdoor Ads (billboards), and

In-Store ads.

Process

Service Workflow Duration

PRE-OPENING cleaning, checking 2 hours before opening the store

of the inventories.
Greet Customers (entertain) 1min.

Getting the orders 2min.

Preparing and serving the orders. 5min.

Assist with payments 1min.

Thank you. 1min.

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B.2 Porter’s Five Forces Framework of Competitive Analysis

S
Forces Description
W
Chowking is one of the best and well know fast-food chain
here in the Philippines even though the competition among fast
Threat of food chain is high these fast food chains specifically Jollibee,
New W Greenwhich, Mang Inasal which are also known as the major
playes in the food industry lies on the same company which is
Entrants Jollibee Food Corp. Also, Chowking’s product line is hard to
imitate in terms of its taste quality for the businesses who wants
to imitate them.
Bargaining power of the supplier for Chowking is strong. The
fact that fast-food chain such Chowking follows a certain
Power of guidelines and standards in using what product should be used
S
Suppliers for their products. Suppliers has a control over them because
they are source of the raw materials and resources of the
company in order the business to operate.
Bargaining power of the buyer of Chowking is strong because
they always consider the buying capacity of their customers
Power of that’s why fast-food chains like Chowking creates combo meals
S
Buyers that will suits on their target market budget they usually relay on
their customers buying power in order to capture more
customers.
The threat to substitute products is strong due to the fact that
Threat to
there are many substitute for the product of Chowking most
Substitute S
especially in the area of Intramuros. Also, its direct competitors
Products
can be a threat to them.
Chowking’s competitive rivalry is strong due to the fact of
Competitive the present of a lot substitute product around the area of
S
Rivalry Intramuros. Also, there are a lot of neighbor direct competitors
of Chowking within the same area.

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V. Company Analysis

A. Human Resource Area

Customer Focus As a customer-centric company, we listen to our consumers’

desires and provide personalized services that address those needs.

Excellence Mediocrity is not an option. We seek to constantly surpass the highest

standards expected of us.

Respect for the Individual We gladly welcome diversity, and celebrate the

uniqueness of every individual in our team.

Spirit of Family & Fun We foster relationships on trust and friendship that go

beyond the walls of our workplace.

Humility to Listen & Learn We seize opportunities to improve ourselves. We always

listen, respect, and value the opinions of others.

Honesty & Integrity We walk the talk. We’re committed to upholding the highest

ethical & moral standards of the countries we operate in, delivering whatever we

promise.

B. Marketing Area

The Market Segment

 Teenagers and children

 The middle age (25-35yrs old)

 The senior age (50+yrs old)

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 Chowking’s positioning is to be known as a brand that serve-quality and modern

Chinese food, but also enables the working man to achieve success and share this same

success with their loved ones. Over the years, Chowking is very dedicated and consistent

in providing the best quality products of Chinese food to its customers.

For the past years, the store introduce and position itself in the market:

 Chowking sets out to create a deeper connection with their millions of patrons they

gets into the heart of their desires and experiences.

 Chowking’s brand mantra way back 2010: Tikman ang Tagumpay encapsulates in

a few yet meaningful words what Chowking passionately stands for. With over 25

years of the best-tasting Chinese meals, Chowking takes the brand further where

good food becomes a fuel in their pursuit of triumph and heartfelt joy and gratitude

through shared meal-time experiences with the family.

 The only fast food chain that serves best-quality Chinese food at an affordable

prices.

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C. Production and Operations Area

Service Workflow Duration

PRE-OPENING cleaning, checking 2 hours before opening the store

of the inventories.

Greet Customers (entertain) 1min.

Getting the orders 2min.

Preparing and serving the orders. 5min.

Assist with payments 1min.

Thank you. 1min.

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VI. Strategy Formulation

Strengths
Quickest Serving time among other food
industry
Cost saving/ systematic food preparation
Option to deliver food to houses, Offices
and other Establishments
Wide-range of food options/choices
Position in strategic location in populated
areas.
Weaknesses
Know to serve unhealthy meals
Limited to menu offered to consumers.
Does not change products often.
Opportunities
Continuous products and service
expansion
Can easily adapt on products and
services to Philippine culture and
tradition.
Threats
Consumers look for a healthier lifestyle
Non-Compliance to sanitary standards
High number of new companies or
restaurant entering the fast food markets.

VII. Objectives, Strategies, Recommendations and Action Plans

General Objectives

 To increase/generate sales

 To increase market share

 To increase Profits

 To identify the current problems/concerns of the customers in order to provide a

quality kind of product and services.

 To come up with an action plan that addresses to needs and concerns of

Chowking’s current customers.

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  To give recommendations/suggestions on how the company will help them

improve the business system and operation.

Specific Objectives that the proponents focused on:

Cleanliness and Sanitation

 To prevent rodents, cockroaches, and other insects from damaging the goods.

 To brief the staff from keeping the tables, chairs, floor clean everytime a

customer finished dining

In-store advertisement

 To increase customer’s brand awareness and identity on the products that

Chowking Intramuros offers. Provide them visual tools in order them to familiarize

the product line of the Chowking at the same time the promotions that the company

is currently into it.

Sales Promotion

 To attract more customers which is inclined to company’s objective; to generate

profit.

 To create a competitive advantage among its direct competitors within the area

and able to promote the brand and products of Chowking.

 To stimulate the interest and awareness of the customers on the product that

Chowking Intramuros offers.

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Merchandising

 To facilitate bundling and price discrimination value meals in Chowking should be

implemented as a merchandising tactic.

 To design highly specialized restaurant equipment, often incorporating heat

sensors, CCTVs, and computer-aided design of Chowing’s kitchen to establish

equipment specifications that are reliable with their operating and merchandising

requirements.

Management Operations

 To identify what should the company focus and improve on the business process

and system.

 To create an organized and effective action plan that will help the company’s

system in order.

Chowking Intramuros has the ability to improve profits by focusing on value.

Customers look for a fast food restaurant menu that includes value items, but they should

avoid cutting their profit level too low with deep discounts, coupons, and free offers.

Enticing customers with promotions for new items and promote range of food items that

appeal to a variety of customers, but balance the special price menu by eliminating too

many options. An excessively large menu means delay in food preparation and also a

possible waste. They will probably throw away food for menu items not selling well or

waste time explaining to customers the purpose of food item isn’t available for that day.

Quality customer service promotes a pleasing experience for your customers.

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 A smile and greeting from the staff when customers come in the store helps set

the tone for the visit. Improving the customer perception of Chowking by keeping the

restaurant interior clean everytime a customer finished dining. A customer who

experiences quality dining is a happy customer and that leads to increased restaurant

profits. A satisfied customer also recommends Chowking to their family, relatives, and

friends.

Strategy Map

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References

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